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Puravankara IPO to raise Rs1,127 cr; opens 31 July

Puravankara IPO to raise Rs1,127 cr; opens 31 July
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First Published: Fri, Jul 27 2007. 08 31 PM IST
Updated: Fri, Jul 27 2007. 08 31 PM IST
PTI
New Delhi: Real estate firm Puravankara Projects plans to raise up to Rs1,127 crore from its initial public offer, which will hit the capital market on 31 July, to part finance land acquisition and repayments of loan.
The issue comes close on the heels of successful IPOs of other realty firms like DLF, Omaxe, HDIL and IVR Prime.
The Bangalore-based firm is all set to foray into the international market with its first overseas project expected to be launched in the next 2-3 months in Sri Lanka.
“We have acquired about 1.06 million sq ft of land in Colombo. We have applied for the approval,” the company’s vice-president (properties, risk and control), Vishnu Moorthi, told reporters here on 27 July.
The company would develop over 100 villas in Colombo, he said, adding that it intends to expand overseas operations.
Puravankara proposes to issue 21,467,610 equity shares of Rs5 each through book building route. It has fixed price band at Rs500-525 and would raise Rs1,073 crore at lower end. The issue, which closes on 3 August, would constitute 10.05% of fully diluted post-issue paid up capital of the firm.
“We have a land bank of 116 million sq ft at strategic locations, of which 14 million sq ft is under construction,” Director Ashish Puravankara said, adding that Rs351 crore from the issue proceed would be used to acquire 1,000 acres of land in Chennai while Rs419 crore would be to repay loans.
“Our average cost of land is Rs97 per sq ft, while the construction cost is Rs1,200-1,500. The average realisation is about Rs3,600 per sq ft,” Moorthi said.
About 99% of current project is residential, he said, adding that going forward the ratio would be in the range of 75-80% for housing and 20-25% for commercial projects.
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First Published: Fri, Jul 27 2007. 08 31 PM IST